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Envoy says Pakistan and Afghanistan will have to resolve trade issues themselves

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Pakistan and Afghanistan would have to resolve their problems themselves, especially trade issues. International community and regional powers want to keep the two neighboring countries engaged in minor issues while the policymakers of the two countries need to sit together and remove the hurdles in the way of beneficially mutual trade.

This was the crux of the seminar on ‘Pak-Afghan Bilateral Trade Relations’ organized by the Institute of Regional Studies on Wednesday.

Afghan Consul General in Peshawar, Hafiz Mohibullah, was the guest of honor.

IRA Chairman Dr Mohammad Iqbal Khalil, Director Pak-Afghan Chamber Ziaul Haq Sarhadi, member of the chamber Shahid Hussain and a columnist Alamgir Afridi spoke at the event.

The speakers said that certain elements want to create and maintain tension between the two countries.

They said the leadership of the two Muslim countries should work out a solution to the economic challenges faced by them.

Hafiz Mohibullah said that instead of looking to others, the two countries would have to solve their political and economic problems themselves.

He said during America’s 20-year occupation of the country, the US and NATO could not establish a single institution or hospital in Afghanistan. Also, he added, the US and NATO failed to take any steps for the economic betterment of Afghanistan.

“All that the US and NATO did in Afghanistan during their stay was to spread destruction. On the other hand the government of Islamic Emirate carried out such projects during its one-year rule in the country which could not be done by the occupation forces and their puppet government(s) during 20 years,” he claimed.

He said the former president of Afghanistan, Ashraf Ghani had control over just one-third of the country, while the Islamic Emirate’s control extended to every nook and corner of the country. The diplomat said the world nations have not yet formally recognised the rule of the Islamic Emirate. But, interestingly they were making various demands to the Taliban government, he added.

About Afghanistan-Pakistan relations, Hafiz Mohibullah said both the countries needed the help and support of each other. The way the people of the two countries supported each other in the past, they should have mutual cooperation for promotion of bilateral trade.

“If they support each other to promote their mutual trade, they would not be in need of looking towards others,” he remarked.

He said that the US and NATO wanted to create problems, but the leadership of the two countries would not allow them to interfere in their affairs. This way they would overcome their economic issues, he said.

Dr Iqbal Khalil said the two countries were connected with each other in all the sectors and their cooperation would result in the development of both the countries. He said that Afghanistan and Pakistan were confronting trade and economic challenges which they should mutually overcome.

The speaker said that despite their important geo-strategic position, the mutual trade between the two countries has decreased instead of showing an increase.

He said that Afghanistan was the major market for trade and industry of Khyber Pakhtunkhwa.

Dr Iqbal Khalil expressed his optimism that peace would be restored in Afghanistan and the government of Islamic Emirate would give a roadmap for trade relations with Pakistan.

Ziaul Haq Sarhadi said the trade volume between Afghanistan and Pakistan during 2022-23 was $968 million, while it was $2.5 billion in 2012.

He said the trade agreement of 1965 between the countries functioned smoothly for 45 years. But in 2010 a new agreement was signed, which was protested by traders and chambers of both the countries. This agreement is not useful and it has become virtually ineffective, he said. This issue needs to be resolved, he added.

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Trade bodies warn almost 11,000 Afghan transit containers stuck at Karachi port

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

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Trade bodies report that nearly 11,000 Afghan transit trade containers are stranded at Karachi port, while thousands more— including shipments of perishable goods—remain stuck at the Ghulam Khan, Spin Boldak, Kharlachi, and Torkham crossings between Afghanistan and Pakistan.

Traders involved in Pakistan–Afghanistan bilateral and transit commerce say they have suffered billions of Pakistani rupees in losses as the prolonged border shutdown continues to stall the movement of goods. Perishable food items have already begun to spoil, compounding financial losses.

They also report a sharp drop in bilateral trade volumes. Exporters who were already issued Form-E certificates have been unable to dispatch consignments, with the closure now nearing two months.

Sarhad Chamber of Commerce and Industry (SCCI) President Junaid Altaf said trade—already limited—has deteriorated further due to the closure of crossings. He estimated losses of roughly $45 million since the Torkham closure began, adding that the halt is damaging for both economies and directly affecting families whose livelihoods depend on trade.

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

In recent weeks, repeated closures of the Pakistan–Afghanistan crossing have also brought pharmaceutical exports to a halt, putting nearly $200 million worth of medicines at risk. Hundreds of trucks carrying antibiotics, insulin, vaccines, and cardiovascular drugs remain stuck at Torkham and Chaman, with temperature-sensitive supplies facing potential spoilage.

The Pakistan Pharmaceutical Manufacturers Association (PPMA) warned that the disruption extends far beyond Afghanistan’s medicine supply. Afghanistan is Pakistan’s main overland route to Uzbekistan, Tajikistan, Turkmenistan, and Kazakhstan, and ongoing shutdowns are undermining key regional connectivity projects, including the Pakistan–Uzbekistan–Afghanistan railway.

Stakeholders are calling for urgent steps to reopen the crossings, warning that prolonged closures threaten not only pharmaceutical exports but Pakistan’s broader economic engagement across the region.

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Pakistan’s citrus export crisis deepens amid ongoing Afghanistan trade route closure

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

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Pakistan’s citrus sector is facing a worsening export crisis as the closure of the Afghanistan crossing continues to block access to its largest market.

Despite the start of the 2025 citrus season, exports are set to fall further from an already steep decline — dropping from $211 million in fiscal year 2021 to just $92.5 million in fiscal year 2025.

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

This year alone, Pakistan shipped 153,683 tonnes of citrus to Afghanistan, while exports through the Afghan transit route also supply Russia, Kazakhstan, and Uzbekistan. With that corridor shut, exporters warn that the bulk of Pakistan’s kinnow harvest could go unsold.

A temporary policy exemption now allows citrus shipments to transit through Iran, but exporters say volumes to Central Asia and Russia cannot compensate for the loss of the Afghan market.

The crisis, however, goes deeper than the current crossing closure situation. Pakistan’s citrus industry continues to suffer from long-standing structural challenges — including reliance on the outdated, seeded kinnow variety that makes up over 90% of exports.

Climate change, rising pest pressure, shrinking yields, and declining A-grade fruit quality have all eroded competitiveness. Yields have fallen to about six tonnes per acre, and nearly half of kinnow processing units have closed.

Global competitors such as Egypt, China, Spain, Morocco, and Brazil have overtaken Pakistan by introducing new seedless, high-yielding varieties with longer harvest windows. As profits shrink, farmers are abandoning citrus orchards: the cultivated area has dropped 16% in the past five years.

Experts say Pakistan must urgently invest in developing seedless, climate-resilient varieties and strengthen existing research centres. At the same time, trade officials need to diversify export destinations by securing new sanitary and phytosanitary agreements to reduce dependence on a single market.

Without structural reforms and diversified access, Pakistan’s signature fruit risks losing its place in global markets — and its farmers risk losing their livelihoods.

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Afghanistan signs agreement with DP World to bolster ports infrastructure

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The Ministry of Finance of Afghanistan and UAE-based DP World have signed an investment term sheet to modernize key commercial land ports, marking a significant step in enhancing the country’s trade infrastructure.

Abdullah Azzam, Head of the Economic Affairs Office at the Office of the Prime Minister, stated that the agreement opens the door for foreign investment and new contracts.

He said that that under this agreement, Afghanistan’s ports will be modernized and equipped with cutting-edge technology.

The agreement outlines the development of cargo handling facilities, port management systems, and operations using advanced equipment in line with international standards. Hairatan Port will be upgraded in the first phase, followed by Torkham Port in the second phase, with subsequent expansion to logistics corridors, economic zones, and other national projects.

DP World officials emphasized that the modernization of these ports will not only increase trade but also create new employment opportunities.

They highlighted Afghanistan’s strategic location as a vital link between Central and South Asia and pledged continued efforts to support the country’s economic growth.

Economic analysts believe the investment will boost trade efficiency, reduce costs, and enhance the country’s transit capacity. Modernizing the ports is also expected to attract further foreign investment and strengthen Afghanistan’s overall economy.

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